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Blank Slate Retirment Investment strategy

Including Financial Independence and Retiring Early (FIRE)
1nvest
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Re: Blank Slate Retirment Investment strategy

#441577

Postby 1nvest » September 12th, 2021, 9:59 am

TUK020 wrote:Principles to hang onto
After wading through much discussion on this forum, there are certain key points that I would like to retain:
- Minimise trading costs; LTBH
- Be wary of transaction costs/taxation/dividend retention involved in dealing with foreign exchanges
- Where active management is used, try to keep OCFs low
- Diversity is important for security, both in terms of economic sectors, and geographies.

Unlike many I count my home as a asset/investment that avoids having to find/pay rent to others, liability matches (you are in effect both landlord and tenant). In reflection of the ancient Talmud advice millennia ago combining that 'land' with commerce (stocks) and reserves (gold). Gold is both a global currency and a commodity. Stocks IMO are appropriately invested in US$/stocks.

£/$/global currencies, land/stock/commodity asset diversification.

Rebalancing wise I just draw cash from whatever is the most up. If accumulating I'd add to the asset that was the most down. As a home is illiquid that basically leaves 50/50 stock/gold providing the disposable income above/beyond the imputed rent benefit.

Primary home is CGT exempt and imputed rent isn't taxed, and also serves as possible late life care home fees cover. Gold legal tender coins are CGT exempt. BRK pays no dividends, levies no fund management fees.

I draw cash as needed, presently given ii brokerage free trade each month I login a week or so before end of month and sell some shares (some gold held via ETF for liquidity), login again T+3 days later to transfer the proceeds to my regular cheque/debit card account so there's a regular monthly 'wage' like deposit into my cheque account by month end (end of month I tend to pay off my credit cards and pay the council tax bill ...etc). If unexpected expenses occur then I either use credit cards or have the option to T+3 make a additional 'irregular withdrawal'.

Each of stocks, land and gold have endured large declines, in some cases staying down at lower levels for extended periods. Individual currencies can equally get hit and stay relatively low for extended periods. In the more ideal case of where a hit occurs against a third of assets/wealth then even if very deep the other assets have you covered.

Really should have rebalanced as the portfolio weightings are at levels where one asset is at/over 50% weighting. With the kids in their mid 20's and flighted the nest the intent had been to downsize the UK home and diversify home(s) more broadly (own multiple smaller properties to travel between during the year (follow pleasant weather) during retirement years), however Covid blew a hole in that, kids returned to the nest, international travel became awkward etc. I had intended to sell up home value prior to the last GE, fearful of a Labour victory and imposition of a wealth tax resulting in a self-exile to a less punitive regime and lower UK exposure to such 'spending other peoples money' Lab typical policies but again family circumstances at the time saw no movement on that front.

Fundamentally its all just a matter of what fits for you, SWAN (sleep well at night).


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